Research on accounting techniques

Internet Exercise #1-Job Order Costing3

Internet Exercise #2-Job Order Costing4

Internet Exercise #3-Contribution margin5

Internet Exercise #4-Break-even analysis6

Internet Exercise #7-Capital budgeting.7

References9

Research on accounting techniques

Internet Exercise #1-Job Order Costing

Job order costing takes into account the personal needs of the client and production is done accordingly and the costs are apportioned accordingly, it is also applied in case production is done in similar bathes specifically for a manufacturer (Hoque, Z. 2005). It is particularly used in sectors where production is not done for general needs but specific needs are to be catered for. For instance Manufacturing companies, Service providers (tertiary sector) and construction companies use it. The following three companies have been using job order costing.

Company: Levi Strauss

Website: http://www.levistrauss.com/

Levi Strauss is a clothing company, more famous for its brand of jeans. It produces in bathes according to particular needs of its customers. It utilizes job order costing because it produces in batches of similar products, therefore it would be easy to assign the costs according to the different customers and clients. Each customer would have a different cost associated with it, thus it would be appropriate to manage the costs in such a way.

Company: Washburn Guitars

Website: http://www.washburn.com/

Washburn Guitars is a guitar manufacturer and was one of the first manufacturers of guitars on a large scale. It uses job order costing because it produces custom made products and they would be catering to the customer in a personalized way. Washburn would be meeting all the requirements of the customer regarding the guitar specifications and its related components. Every customer would have a different and separate cost associated with him. Hence, in order to manage everything in a smooth way, job order costing is used.

Company: Gensler

Website: www.gensler.com/?

Gensler is a Design and Architecture Company having a worldwide presence. It has been designing project all around the world; most recently it designed China's tallest building. It uses job order costing because it would be providing guidance to specific clients and the client would have a unique cost associated with it, they would have cost associated with the separate job.

Internet Exercise #2-Job Order Costing

Job order costing is used in business where production level is high and where the production is done according to the customer/client's needs and preferences. It assures a smooth monitoring, as separate cost records would be kept for the different client/customers. It is also used in such cases when the company produces an extended line of products and different variety exists.

There are a number of reasons why manufacturers use job order costing. Firstly, these companies receive orders for customized products where the order would differ in quantity, quality, color, size, and also design. The company does not only have a single client, but has a large number of clients. Thus it would become difficult to manage all the clients altogether, as there is risk that costs and order specifications would become jumbled up. Job order costing reduces the chances of confusion taking place. When companies receive orders for difference kinds of ...